The higher the customer participation in service processes, the more certainty a firm has with respect to service time and capacity.

A process invariably resides within a department or traditional management function.

Proportional increases or decreases in the perceived benefits and the price of a product result in no net change in the value of the product.

In the context of the value chain model, fewer resources are needed to achieve performance goals when "information replaces assets."

Quality measures the degree to which the output of a process conforms to the management's expectations and requirements.

Performance measures should support customer requirements.

Actionable measures are not bound by time.

A strategy of quality improvement often leads to increased short-run profitability.

A small change in a firm's targeted markets or strategic direction usually has little impact on the value chain.

______ represent the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain.

The style and fit of a jacket can be classified as a(n) ______ attribute.

Scalability is a key issue in e-commerce.

The use of technology has increased opportunities for employee creativity and empowerment.

Low scalability implies that serving additional customers requires low incremental variable costs.

______ refers to using the Internet and technology to provide facilities that create and deliver time, place, information, entertainment, and exchange value to customers and support the sale of goods.

Ambient conditions are the explicit signals that communicate an image about a firm and include examples such as mission statements and diplomas on a wall.

Location is an important competitive priority in a service business.

Customer contact is measured by the percentage of time the customer must be in the service-delivery system relative to the total time it takes to provide the service.

In the context of service-encounter design, free trips and extra vacation days is not considered a form of recognition.

In the context of intellectual property of multinational enterprises, patents protect services.

In the context of sourcing, a single supplier often provides economies of scale and the ability to form close partnerships.

The center-of-gravity method increases the weighted distance between the facility to be located and its supply and demand points.

Supply chain optimization includes minimizing the total costs of manufacturing and transportation, which might consider sourcing, distribution, and placement of inventory throughout the supply chain.

Third-party logistics providers can leverage business intelligence and analytics to create efficiencies and economies of scale in the supply chain.

Continuous flow processes are used to create custom goods and services.

All processes and functional areas participate in the reengineering efforts of a firm.

____ goods are configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set.

In the context of process design, ____ is defined as the ability to produce the right types and amounts of products as customer demand or preferences change.

The design of service facilities requires the clever integration of layout with the servicescape and process design to support service encounters.

Facility layout does not enhance sustainability in service-producing organizations.

______ is a technique to group tasks among workstations so that each workstation has—in the ideal case—the same amount of work.

One of the differences between product layouts and process layouts is that unlike product layouts, process layouts:

Forecasting is a key component in customer relationship management.

Judgmental forecasting relies upon historical data in developing forecasts.

In the context of data patterns in a time series, a(n) ______ variation is a one-time variation that is explainable.

______ is a common approach to gather data for judgmental forecasts.

Utilization is the average time taken to complete one cycle of a process.

In a process design, an activity refers to a group of tasks needed to create and deliver an intermediate or final output.

______ are organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers.

Management strategies to improve process designs of services focus on:

Process layouts require simple planning and control systems.

In a cellular layout, additional floor space is required because machines are not very closely linked within a cell.

One of the disadvantages of a product layout is that it has:

A ______ layout is an arrangement based on the sequence of operations that is performed during the manufacturing of a good or delivery of a service.

Call center service training is a preproduction service that requires forecasts to create value in a value chain.

Offering complementary goods or services is an example of a short-term capacity strategy.

In the context of data patterns in a time series, ______ are characterized by repeatable periods of ups and downs over short periods of time.

In the context of forecasting errors, ______ eliminates the measurement scale factor.

In the Theory of Constraints, a ______ activity is one that effectively limits the capacity of the entire process.

Flow time depends not only on the actual time to perform the tasks required, but also on how many other entities are in the work-in-process stage.

Little’s Law uses short-term averages to explain relationships.

The number of units or tasks that are completed per unit time from a process is the _______.

A(n) _______ is the work activity that effectively limits the throughput of the entire process.

Single-period inventory models are used in situations involving items that can be carried in inventory and sold in future periods.

Radio-frequency identification (RFID) chips allow firms to track individual containers.

The single-period inventory model applies to inventory situations where demand is uncertain.

In the context of inventory costs, _____ costs can reflect backorders or service interruptions for external customers.

Technology upgrades and backup systems and sites can help mitigate security risks.

A high average inventory value reduces the chances of inventory obsolescence.

Electronic data interchange and Internet links decrease the velocity of supply chains.

Cash-to-cash conversion cycle is the average time to convert a dollar spent to acquire raw materials into a dollar collected for a finished good.

____ specialize in handling all aspects of customers giving back a manufactured good or delivered service and requesting their money back, repairing the manufactured good and giving it to the customer, and/or invoking the service guarantee.

____ inventory is inventory that has been ordered but is in transit.

The ____ function of a supply chain is responsible for selecting transportation carriers and managing company-owned fleets of vehicles.

Managing orders, transportation, and distribution to provide goods and services is part of the ______ function of the Supply Chain Operations Reference (SCOR) model.

The purpose of a master production schedule (MPS) is to break down the aggregate planning decisions into such details as order sizes and schedules for individual subassemblies and resources by week and day.

Enterprise resource planning (ERP) systems integrate all aspects of a business into a unified information system.

In industries where jobs have low skill requirements, changing workforce levels can be cost effective.

Resource management for most service-providing organizations generally requires as many intermediate levels of planning as it does for manufacturing.

The lot-for-lot (LFL) rule is best applied when:

Which of the following is true of a master production schedule (MPS)?

Capacity requirements are computed by multiplying the number of units scheduled for production at a work center by the:

Aggregate planning:

Different industries use different software packages for scheduling because every industry has different problem structures.

Customized scheduling spreadsheets use readily available software such as Microsoft Excel, but may be rather expensive to develop.

The Clarke-Wright Heuristic Method is used to solve the common scheduling problem in logistics that involves determining routes from a central depot or warehouse to many customers.

Two examples of process-focused performance measures for sequencing rules are tardiness and lateness.

In the context of operations management, _____ refers to the assignment of start and completion times to particular jobs, people, or equipment.

Gantt charts are used to:

In the context of sequencing, the _____ minimizes the average lateness of a set of jobs.

In the context of sequencing, the shortest processing time (SPT) rule tends to:

Six Sigma cannot be applied to service processes.

The GAP model helps managers analyze goods and services and the processes that make and deliver them to identify and close the largest gaps and improve performance.

A kaizen event is an approach for mistake-proofing processes, using automatic devices or methods to avoid simple human error.

The Deming cycle is composed of four stages: prepare, deliver, simplify, and achieve (PDSA).

Which of the following is a core philosophy of Six Sigma?

Josephine’s T-Shirts faced a lot of complaints from customers when its recent batch of long-sleeved shirts was dispatched. The employees at Josephine’s T-Shirts, hence, had to rework on the returned items, and in some cases, the company had to even replace the faulty goods. In this case, the costs incurred by Josephine’s T-Shirts are an example of ______ costs.

A run chart is a line graph in which ______.

Identify a true statement about International Organization for Standardization (ISO) 9000.

In-process control is typically performed by people who run the back-end processes.

The 1:10:100 Rule states that if a defect is first detected during the production process, it might cost $1 to fix.

Keeping special cause variation from occurring is the essence of statistical quality control.

In the context of quality control practices in manufacturing, if supplier documentation is done properly, incoming inspection can be completely eliminated.

Which of the following is true of common cause variation?

Which of the following is true of control charts?

In the context of statistical process control and variation, if no special causes affect the output of a process, we say that the process is ________.

The relationship between the natural variation and specifications is quantified by a measure known as the ________.

Total productive maintenance (TPM) seeks to reduce worker ownership of production equipment by excluding employees from maintenance activities.

Any activity, material, or operation that does not add value in an organization is considered waste.

In the context of Kanban systems, a withdrawal Kanban authorizes the gateway workstation to produce parts.

Kanban is a Japanese word that means elimination of waste.

Lean Six Sigma focuses on real dollar savings and has the ability to make significant financial impacts on an organization.

In the context of lean tools and approaches, _____, one of the components of the 5S principles, refers to a clean work area.

Which of the following is an example of waste in organizations?

_____ is focused on ensuring that operating systems will perform their intended function reliably.

Which of the following is true of a push manufacturing system?

A _____ system produces finished-goods inventory in advance of customer demand using a forecast of sales.